3 rd Quarter FY2012 Results of Operation

Revenues

Total revenues of 3Q12 were JPY76,690 million, up 8.4% YoY.

Network Services revenue was JPY48,515 million, up 2.7% YoY.

Revenues for Internet connectivity services for corporate use were JPY11,783 million, up 7.9% YoY, mainly due to the continuous demands for broader bandwidth by network operators.

Revenues for Internet connectivity services for home use were JPY4,111 million, down 5.0% YoY. While our LTE mobile data communication service, which was introduced in February 2012, has been accumulating orders continuously, the cancellations of old type connectivity services still continued.

WAN services revenues were JPY18,880 million, down 1.6% YoY.

Outsourcing services revenues were JPY13,741 million, up 7.2% YoY. The revenue growth was mainly led by the continuous demands on "IIJ GIO Hosting Package Services," datacenter-related services and security-related services.
Network Services Revenues Breakdown
  3Q11 3Q12 YoY % change
  JPY millions JPY millions  
Internet Connectivity Service (Corporate Use) 10,920 11,783 7.9
 IP Service 2 6,911 7,435 7.6
 IIJ FiberAccess/F and IIJ DSL/F 2,352 2,397 1.9
 IIJ Mobile Service 3 1,473 1,772 20.3
Others 184 179 (2.6)
Internet Connectivity Service (Home Use) 4,328 4,111 (5.0)
 Under IIJ Brand 671 969 44.4
 hi-ho 3,222 2,678 (16.9)
 OEM 435 464 6.7
WAN Services 19,177 18,880 (1.6)
Outsourcing Services 12,817 13,741 7.2
Total Network Services 47,242 48,515 2.7
 
Number of Contracts for Connectivity Services
  3Q11 3Q12 YoY Change
Internet Connectivity Services (Corporate Use) 93,345 105,672 12,327
 IP Service (-99Mbps) 938 908 (30)
 IP Service (100Mbps-999Mbps) 342 370 28
 IP Service (1Gbps--) 132 186 54
 IIJ Data Center Connectivity Service 303 309 6
 IIJ FiberAccess/F and IIJ DSL/F 43,425 46,670 3,245
 IIJ Mobile Service 4 46,964 55,883 8,919
Others 1,241 1,346 105
Internet Connectivity Services (Home Use) 383,745 465,624 81,879
 Under IIJ Brand 37,322 89,885 52,563
 hi-ho 148,856 150,238 1,382
 OEM 197,567 225,501 27,934
Total Contracted Bandwidth  853.0Gbps 1,107.5Gbps 254.5Gbps

SI revenues were JPY25,601 million, up 17.9% YoY.

Systems construction revenue, a one-time revenue, was JPY9,824 million, up 33.7% YoY, mainly due to the increase in both number and volume of systems construction projects. Large overseas construction projects have been added. Systems operation and maintenance revenue, a recurring revenue, was JPY15,777 million, up 9.9% YoY. The increase was mainly due to the continuous accumulation of revenue from "IIJ GIO Component Services."

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